US aviation regulator downgrade possibly affects codesharing pacts


Aviation analysts say the US Federal Aviation Administration downgrade of Malaysia can adversely affect codesharing agreements between Malaysian and other international carriers. – The Malaysian Insight file pic, November 16, 2019.

THE biggest impact of the Civil Aviation Authority of Malaysia (CAAM) downgrade to Category 2 is the possible knock-on effect on codesharing agreements Malaysia Airlines (MAS) is planning with other carriers, aviation analysts told The Star.

The downgrade by the US Federal Aviation Administration (FAA) disallows new codesharing arrangements between Malaysian and US carriers, and may move other airlines to do the same.

The Star quotes Maybank Investment Bank aviation analyst Mohsin Aziz, who said aviation authorities of other countries tend to take heed of FAA decisions.

“For instance, Thailand was downgraded by the FAA in 2015 and it prompted many other countries and regions to scrutinise Thai airlines, such as Japan,” he was quoted as saying.

While this has not yet happened to MAS, the situation needs to be monitored, he added.

Concurring with Mohsin was the National Union of Flight Attendants Malaysia president, Ismail Nasaruddin, who said codesharing agreements with other regions such as Europe could be affected.

“Currently, the codeshare pacts with other countries remain.

“(However), once the rating has been downgraded, there is a possibility other authorities such as the European Union Aviation Safety Agency will follow. It is a snowball effect.”

Mohsin said codeshare arrangements allowed for seamless check-ins and baggage transfer processes when travelling.

In terms of travel to the US, he felt the FAA downgrade might not have as big an impact on Malaysians as not many travelled to the US because of the distance, compared to other regions.

In April, the FAA conducted an International Aviation Safety Assessment programme on Malaysia.

It announced earlier this week that it had downgraded CAAM’s air safety rating for failing to meet international safety standards.

The assessment applies to the aviation authority, not the airlines or airports, but it means airlines licensed by CAAM will not be able to add new routes to and from the US.

The only Malaysian airline that flies to the US directly is AirAsia X Berhad, to Honolulu, Hawaii via Osaka, Japan. – November 16, 2019.



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